1. OVERVIEW OF PRODUCTION PROCESS 1.

0: FABRICATION PROCESS
I 1 2 3 4 5 6 7 Machines Blast Furnace Fabrication process Pig Iron / Iron smelted with coke and limestone Re-melting molten iron to reduce the carbon content Operations Iron smelting Making of steel

Electric Arc Furnace. Open Hearth Furnace Furnace

Rolling Mills

Melting steel for making castings. Steel Hardening / [is a device used for heating]
Liquid steel is cast into ingots and converted into rods Shaped into deferent forms

[Heat Treatment]
Rolling of steel Fabrication steel of

1.1: MARCHING PROCESS

II 1 Machines Castings / mould Metal working process Pouring molten metal into prepared cavity. Foundry [is a factory that produces metal castings] Squeezing a piece of hot metal in a die. / Heating metal into red and hammering into shape (power hammer) /[is a manufacturing process involving the shaping of metal using localized compressive forces] [classifications: cold, warm and hot forgings] Forge [is a hearth used for forging. The term "forge" can also refer to the workplace of a smith or a blacksmith, although the term smithy is then more commonly used.] Cutting rough sizing or shaping of manufactured articles Heating and cooling metals to get hardness or toughness and corrosion resistance Operations Casting

Forging machine

Forgings / Smithy

3 4

Any cutting tool

Forming Heat treatment

Heating and cooling operations.

Annealing, Case hardening, hardening steel, normalizing, quenching and tempering

Welding.

Welder Electric)

(Gas

or or

[Pneumatic/or steam riveter]

Joining two metallic objects. / Fusing metals together while in molten state. / Electrode [is an electrical conductor used to make contact with a nonmetallic part of a circuit]

SINGAR ACADEMY [CA-CWA-CS]

M: Trichy: 93451 22645/Chennai: 98419 71881

1.1

Processes are chemical or mechanical in nature and alter the surface characteristic of the metal

Surface Treatment

Anodizing, enameling, galvanizing, honing, lapping, painting, plastic coating, etc..

1.2: CLASS OF MACHINE AND 1.3: SPECIAL PURPOSE MACHINE

Q: Name five general purpose machines. i) Lathe [centre or engine] ii) Drilling machine iii) Grinding machine iv) Milling machine v) Planing machine vi) Shaping machine Q: Name five special purpose machines. i) Honing machine ii) Boring machine iii) Broaching machine iv) Gear-cutting machine v) Lapping machine vi) Turret and capstan lathes vii) Shaping machine II 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Machines Punching die Blanking die Rotary cutter Broacher Drill bit / Drilling machine Pillar Drill or Radial Drill Grinding Machine Centre lathe Milling Machine / Hobbing Machine Shaping Machine Machining Process Punch and die [metal removed is scrap] blanking [metal removed is finished goods] Boring a hole Toothed tool used to remove metal / Removing metal from inside a hole Making a cylindrical hole of an object/ Making a small hole in a block of metal. Making a cylindrical hole of an object. Operations Die cutting Blanking Boring Broaching Drilling

Portion of shaft to be supported in a bearing sleeve Surface smoothing process with hand or machine Reducing the thickness of one side of a metal cube. Helicel groove on shaft / Teeth on a gear wheel Cutting a V groove on a flat surface./ [V groove in a Vie-block]

Flam cutting Grinding Knurling Lapping Milling Hobbing Parting Shaping

Overview of Production Process

1.2

15 16 17 18 19 20 21 22 23 24 25 26

Plaining Machine Honing Machine

Machining a large flat surface on metal Very line finishing of the inside diameter of a cylinder liner,

Plaining Honing Punching Parting Reaming Sawing Screw cutting Slotting Taper turning Tapping Turning

Slotting machine

Making keyways on inside surface of the bore of a pulley.

Centre Lathe

Reducing diameter of a cylindrical object. / Cutting and removing material from surface of the work piece A flat face at the end of a shaft / Thread in a nut material handling operations

1 2 3 4 5 6 7

material handling equipments Hand Trolley. Jib Crane. Belt Conveyor. Electromagnet. Fork-lift Truck. Roller Table. Gravity chute.

9 10

Electric Overhead Travelling (E.O.T.) Crane [EOT Crane] Fork-lift truck. Stacker

For movement of small components in a shop. Handling heavy machine parts within small radial distance. Feeding coal and iron in a steel plant. / into the furnace in an Electric Power Station / [used in Assembly Line] Picking up bits of iron and steel in a scrap yard. Handling crates on pallets within a factory. Transferring heavy materials from one department to another Transporting fertilizer packed bags to a truck on the ground below. / material handling or Transporting fertilizer packed in bags to a railway wagon or truck on the ground below Moving heavy load above the machine on the shop floor.

Handling crates on Pallets within a factory / Move palletized unit loads. [is a large machine used in bulk material handling applications in warehouse]

1 2 3

Method Ranking Method Motion Economy Work Sampling

Purpose Job Evaluation Method Study Work Measurement

SINGAR ACADEMY [CA-CWA-CS]

M: Trichy: 93451 22645/Chennai: 98419 71881

1.3

4 5 6 7 8 9

Normal Curve Use of Templates Crashing Replacement Stock Level Inspection Machine Foundry Carpentry TurboAlternator Rotary Kiln Spinning Mill Assembly Line Refinery Machine Shop Boiler Generator Power Loom Automobile Tyre Plant Laboratory Design office

Statistical Quality Control Plant Layout Net work Analysis Maintenance Inventory Control Go-No Go Gauge [any of a variety of measuring instruments] Industry Cupola / Mould Furniture making Hydro-electricity Cement Cotton Yarn Television Set / Car assembly [conveyor is used] Aviation Fuel / Petrol Tools / Castings Steam Electricity Cloth Gearbox Rubber Microscope [is an instrument used to see objects too small for the naked eye] Pantograph ["Pantograph" is a drawing instrument to magnify figures]

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Q: Difference between Casting and Forging. Casting Casting is a process of pouring a molten metal into prepared cavity or mould and allowing it to solidify. Examples, sand casting, centrifugal casting

Forging Forging is a process of heating the metal into red and then hammering it into shape. Examples, drop forging, press forging etc.

Q: Uses of Jigs and Fixtures A: Jig is a device designed for holding the job and guiding the path of tool for a particular operation on a number of similar operations. A fixture is used to hold and support the work piece in a predetermined position for a particular machining operation. Uses of jigs and fixtures are as follows: a) Jigs quickly and accurately guide the tools. Difficult operations are rendered easier, speedier, and yet more accurate by using jigs. b) Jigs help in mass production by producing accurately machined interchangeable parts. c) Fixtures are essential in all machine work, because work must be firmly held at the time of working of tools. d) Fixtures used along with jigs increase the speed and accuracy of work.

Overview of Production Process

1.4

1 2 3 4 5 6 7 8

Abbr. 5S ABC AFTWAYS AGVs ALDEP AOQ Assembly Line BIS

Expansion Seiri, Seiso, Seiton, Seiketsu, Shisuke. Always Better Control Always Fair Times Automated Guided Vehicles. Automated layout Programming Average outgoing Quality Henry Ford Bureau of Indian Standard Bill of Materials. Business Process Engineering. Business Process Reengineering Computer Aided Design Cost Benefit Analysis Computer Numerical Control Common Business Oriented Language Cost Of Poor Quality. Plant Layout Critical Path Method Computerized Relative Allocation of Facilities Technique Customer Relationship Management. Direct Numerical Control Dynamic Slack per Remaining Operation. Earliest Due Date Employees State Insurance Maintenance System

Functional area

Classification of inventory based on annual usage value

Plant layout Quality control Standardization

9
10 11 12 13 14 15 16 17 18 19 20 21

BMT
BOM BPE BPE / ITI BPR CAD CBA CNC COBOL COPQ CORELAP CPM CRAFT

Work measurement technique

Public Sector Its essence lies in two questions-Why and What if cutting across all functions. Product design Project viability checking Machine Tool Computer Program

Project Management / planning Plant layout

22 23 24 25 26 27

CRM DNC DS/RO EDD ESI Failure Analysis

Job sequencing Welfare

28
29 30 31 32

FCFS
FIFO FMS Fractionalization ICICI

Prioritization
Inventory Management Flexible Manufacturing System. Gilbreth Industrial Credit and Investment Corporation of India

Venture Capital

SINGAR ACADEMY [CA-CWA-CS]

M: Trichy: 93451 22645/Chennai: 98419 71881

1.5

33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58

IFCI ILO IPPS IR ISO JIT LCL Learning Curve LP LTPD MBO Mortality Curve MRP MTBF MTM OCC Pareto Analysis Payback period PBT PERT Pickling PMTS PPC Proximity Factor RA SAM

Industrial Finance Corporation of India International Labour Organization Integrated Production Planning System. Industrial Relations International Standards Organization [Equal in Greek] Just In Time Lower Control Limit Labour Cost Linear Programming Lot Tolerance Percentage Defective. Management By Objectives Meredith & Gibbs Materials Requirement Planning Mean Time Between Failures Methods Time measurement Operating Characteristic Curve. Inventory Control Investment decision Profit Before Tax Program Evaluation and Review Technique Surface Treatment Predetermined Motion Time Systems Production Planning and Control Locational Planning Relaxation Allowance. Special Purpose Machine Tools

Project funding Labour related standards

Employee Relations Standardization Inventory Control / Japanese technology Statistical Quality Control Product mix determination/ Optimization

Inventory management Reliability Work measurement

Profitability Project planning

Work Study Manufacturing planning and monitoring

Machines for producing a class of products

59
60 61 62 63 64 65 66

Scheduling
SOT SPT SRAC TOT UCL USP VA

Henry Gantt
Priority Rules Shortest Processing Time Short Run Average Cost Transfer of Technology. Upper Control Limit Unique Selling Proposition Value Analysis Scheduling Capacity planning Quality Control Marketing strategy Cost control

Overview of Production Process

1.6

67 68 69 70 71 72 73 74

VAM VAM VAT VFM VOH WIP Work Study ZBB

Vogel Approximation Method Transportation Analysis Value Added Tax Value for Money. Variable Over Head Work in Progress F. W. Taylor Zero Based Budgeting

i) Transportation application Tax based on additional Cost of processing Cost Accounting Production Control iii) Demand for a product or service has to be justified each time budget is prepared.

Q: A shaft 1600 mm in length is being machined on a lathe. If spindle executes 800 r.p.m and feed is 0.20 mm per revolution, how long will it take the cutter to pass down the entire length of shaft? A: Feed=0.20 mm No. of revolutions in passing 1600mm Spindle executes 800 r.p.m Time required = = 1600/0.2 8000/800 mm = = 8,000 10min

SINGAR ACADEMY [CA-CWA-CS]

M: Trichy: 93451 22645/Chennai: 98419 71881

1.7

1.5 CLASSIFICATION OF INDUSTRY

Define Production: Production is defined as the step-by-step conversion of one form of material into another form through chemical or mechanical process to create or enhance the utility of the product to the user. Thus production is a value addition process. What are the Objectives of Production Management? The objective of the production management is to produce goods or services of Right Quality, Right Quantity, Right Time and Right Manufacturing Cost Explain Operating System: Operating system converts inputs in order to provide outputs which are required by a customer. In some of the organization the product is a physical good (hotels) while in others it is a service (hospitals). What are the functions of Managing Operations? PLANNING: Activities that establishes a course of action and guide future decision-making is planning ORGANIZING: Activities that establishes a structure of tasks and authority CONTROLLING: Activities that assure the actual performance in accordance with planned performance MODELS: models like aggregate planning models, break even analysis, linear programming and computer simulation, decision tree analysis Write down the scopes of production and operations management: 1. Location of facilities 2. Plant layouts and material handling 3. Product design 4. Process design 5. Production and planning control 6. Quality control 7. Materials management 8. Maintenance management. What are the types of Industry? a. Synthetic: A synthetic industry, also called the assembling industry, involves the production of a product by the use of various elements. Ex: Light and heavy engineering and watch-making industries b. Analytical, c. Conditioning; and d. Extractive: involving the separation of one element from another, as in the case of metal form the ore. Briefly explain the classification of production system and its characteristics: a. Intermittent industries: manufactures different components on different machines and assembles them to get the end products and b. Continuous industries: uninterruptedly produce one or two products of a standardize nature.

Overview of Production Process

1.8

Intermittent system of production can be divided into job and batch production. 1. Job Shop Production: Job shop production is characterized by manufacturing of one or few quantity of products designed and produced as per the specification of customers within prefixed time and cost. Characteristics: High variety of products and low volume using general purpose machine. Advantages 1. Because of general purpose machines and facilities variety of products can be produced. 2. Opportunity exists for creative methods and innovative ideas. Limitations 1. Higher cost due to frequent set up changes 2. Higher level of inventory at all levels and hence higher inventory cost 3. Production planning is complicated 4. Larger space requirements. 2. Batch Production: American Production and Inventory Control Society (APICS): as a form of manufacturing in which the job passes through the functional departments in lots or batches and each lot may have a different routing.. Characteristics: Batch production system is used under the following circumstances: 1. When there is shorter production runs 2. When plant and machinery are flexible 3. When plant and machinery set up is used for the production of item in a batch and change of set up is required for processing the next batch 4. When manufacturing lead time and cost are lower as compared to job order production. Advantages 1. Better utilization of plant and machinery 2. Promotes functional specialization 3. Cost per unit is lower as compared to job order production. Limitations 1. Production planning and control is complex. 2. Higher set up costs due to frequent changes in set up. 3. Continuous Production: Production facilities are arranged as per the sequence of production operations from the first operations to the finished product. The items are made to flow through the sequence of operations through material handling devices such as conveyors, transfer devices, etc. Characteristics 1. Dedicated plant and equipment with zero flexibility. 2. Material handling is fully automated. 3. Process follows a predetermined sequence of operations. 4. Component materials cannot be readily identified with final product. 5. Planning and scheduling is a routine action. Advantages 1. Standardization of product and process sequence 2. Higher rate of production with reduced cycle time 3. Higher capacity utilization due to line balancing 4. Manpower is not required for material handling as it is completely automatic 5. Person with limited skills can be used on the production line

SINGAR ACADEMY [CA-CWA-CS]

M: Trichy: 93451 22645/Chennai: 98419 71881

1.9

6. Unit cost is lower due to high volume of production. Limitations 1. Flexibility to accommodate and process number of products does not exist 2. Very high investment for setting flow lines 3. Product differentiation is limited. The continuous industries are classified into Mass production system and Process production system. 1. Mass Production: Manufacture of discrete parts or assemblies using a continuous process are called mass production. Characteristics 1. Standardization of product and process sequence. 2. Dedicated special purpose machines having higher production capacities and output rates. 3. Large volume of products. 4. Shorter cycle time of production. 5. Lower in process inventory. 6. Perfectly balanced production lines. 7. Flow of materials, components and parts is continuous and without any back tracking. 8. Production planning and control is easy. 9. Material handling can be completely automatic. Advantages 1. Higher rate of production with reduced cycle time. 2. Higher capacity utilization due to line balancing. 3. Less skilled operators are required. 4. Low process inventory. 5. Manufacturing cost per unit is low. Limitations 1. Breakdown of one machine will stop an entire production line. 2. Line layout needs major change with the changes in the product design. 3. High investment in production facilities. 4. The cycle time is determined by the slowest operation. 2. Process Production: This system is an extended form of mass production where production is carried on continuously through, a uniform predetermined sequence of operations. Generally under this system finished product of one process is used in the next process as a raw material till the last process. Large industries like petroleum refining, heavy chemical industries generally use this system of production. Q: Describe in brief the concept of FMS. What are its advantages and disadvantages? A: A Flexible Manufacturing System is a hybrid between continuous and intermittent flow of production. Here, using computer controlled machine and automated material handling equipment, a continuous flow is instilled in otherwise high variety, low production volume flow. Thus FMS is builds on the programmable automation of NC and CNC machines. Programs and tooling set up can be quickly changed and production can be switched on from one job to another without any loss of changeover time.

Overview of Production Process

1.10

Key components of FMS are: i) Several computer controlled workstations having CNC machines and robots for loading and unloading. ii) Computer controlled transport systems for moving materials and parts from one machine to another. iii) Computer controlled robots for loading and unloading stations. iv) An automated storing and retrieval system. The above subsystems of FMS are controlled by a central computer with the needed software. Advantages of FMS can be broadly divided into following: i) Flexibility: With slight changes in programs the system can be used with less recurring capital investment. ii) Adaptability: With little training the supervisors can take up family of jobs earmarked to the system. iii) Wider scope: Advanced manufacturing technology continuously opens newer application areas. iv) Lesser human effort results in less amount of human error. v) Improved productivity through better quality, effective control of a small area. Disadvantages of FMS are as follows: i) High initial capital investment. ii) Limited ability to adapt to production changes. iii) Substantial preplanning, tooling and fixture requirements. iv) Standardization of part design required to reduce the number of tools. v) Long planning required installing FMS. Q: Distinguish between a job shop and a flow shop. A: Flow Shop Job Shop 1 In a flow shop, continuous production/ In a job shop, not all n jobs are assumed to pass assembly line, each of the n jobs must be Through or require processing in m machines. Also processed through m machines in some jobs may require more than one operation In the exactly the same order and once in every same machine. The sequencing of Operations may be machine. different for different jobs. 2 Specialized machine results in low Wide variety is at reasonably low cost since general variable cost per unit and high volume purpose machines are utilized. absorbs the fixed cost easily; so unit cost is low. 3 Even unskilled or semi-skilled operator Through grouping of facility around standard will be able to operate the machine operations, high capacity utilization could be effected. thereby reducing Dependencies on workers. 4 Operation management is much simpler The workers are engaged in non-repetitive and and meeting delivery commitments is challenging job. Their job gets enriched and morale relatively easier. high. 5 Failure at any stage would result in Determination of optimum batch size creates a

SINGAR ACADEMY [CA-CWA-CS]

M: Trichy: 93451 22645/Chennai: 98419 71881

1.11

6 7 8

breakdown of entire flow until repair is completed. The pace of production is determined by the slowest machine. The system is relatively inflexible. The system requires high investment due to specialized nature of machine.

problem Material flow is complicated and unsystematic. Machines are diverse and operations are complex requiring highly skilled workers. Material Handling cost is usually higher since flow lines are irregular.

Overview of Production Process

1.12

1-6. TECHNOLOGICAL ASPECTS OF DIFFERENT PRODUCTION PROCESS

Power: all companies have gone in for massive power generating sets to improve their working. Recovery Process - Waste Management: Classification of Waste: Classification on the basis of i. Resources, i.e., how much of a particular resource has been wasted. ii. Property i.e. hazardous or non-hazardous. iii. The recoverability of resources. iv. Origin of waste, i.e., whether it is commercial waste or industrial waste, residential waste or office waste and construction waste or agricultural waste. Objectives of waste management: Minimization of overall waste To cut down on all the unnecessary activities that which do not add value to the system. To increase the profitability of the operation followed by different organizations. To inculcate a sense of cost-effectiveness To follow the ethics and the principles of Total Quality Management (TQM). To aspire for international recognition Attributes of effective waste collection system: 1. Identify the waste 2. Waste-separation at source 3. Decide about the quantity to be stored in a particular container 4. Decide about the physical dimensions other important attributes of the container. 5. Collect the waste in these containers. 6. Make projections of the rate of waste generation. 7. Ensure that the waste collection is timely 8. Motivate for collecting the waste at source 9. Make provisions to dispose the waste What are the features of recycling system of wastes? 1. Easy to install and operate. 2. Economical from the cash outflow point of view. 3. Convenient and not highly complex. 4. Within the budgetary constraints. 5. Approved by the legislation and other statutory authorities in force. 6. Flexibility and not rigidity in operations. 7. Economies of scale. 8. Does not require highly skilled labour force for its operation. 9. Adaptability in the context of the needs and objectives of the organization. Pollution Control: Pollution can be solid type, Liquid type, Gaseous pollutants and Hybrid-type, having features and characteristics of one or more of the above three. Define noise-pollution: Noise may be defined as an unwelcome, unpleasant, unwanted and unavoidable sound. For example it can be classified as under: Unpleasant Noise - Sources of such noise are, predominantly: i. Industrial outlets.

SINGAR ACADEMY [CA-CWA-CS]

M: Trichy: 93451 22645/Chennai: 98419 71881

1.13

ii. Increased automation. iii. Lack of work culture. iv. Lack of awareness. v. No concern for the environmental and other allied issues. Unavoidable Noise: Unavoidable noise is a part and parcel of our daily life. We simply cannot escape from it. It is one of the prices one has to pay foil modern living. These are from: i. Regular sources. ii. Work-places/stations. iii. Use of machines. iv. Limited and restricted choices. Other types could be vibration. People exposed to it for longer periods are likely to suffer from fatigue and exhaustion which may prove to be quite costly in the long run. Objectives of pollution control: to make the world a better place to live in. 1. Preserve Environmental 2. Ecological balance. 3. Dignity of life for all and sundry. 4. Protection from physical diseases. 5. Protection and prevention from mental impairment. 6. To maintain the right balance between the natures bountiful resources and to protect them. 7. To increase the life expectancy. 8. To enjoy a stress-free high quality existence. 9. To increase the employees productivity. 10. To boost up the organizational growth at the micro level. 11. To felicitate nations to be more competitive at a macro level. 12. To integrate and synthesize the world as one at the global level. Control of pollution: 1. Controlling at source. 2. Controlling during processes, operations and other activities. 3. Control by suitable enclosures. 4. Control by protection. 5. Control by preventions. 6. Control by absorption. 7. Adhering to regulations laid down by law, governments and guidelines issued by the global bodies Q: Technology as an aspect of production of the goods/services is the domain of the production engineer and as such the operations manager should stay clearly away from this. He need not have any specialized knowledge or appreciation of the technology. Do you agree or disagree with this statement? Justify your answer. A: Operations managers need to understand the technology of the process. The extent to which they will need to appreciate the engineering/technology base in order to contribute to it will vary. However it is essential in all situations that the operations managers should understand the process in terms of the following: 1. The relationship between set-up time and process time so as to help choose between options by using the break-even concept: i) Break-even Additional setting up time for a process.

Overview of Production Process

1.14

ii) Reduction in process time per unit of product service. 2. The operating requirements of each process including loading, unloading, maintenance, and waste by-products created 3. The different dimensions of flexibility including the ability to: (a) produce part or all of the current/anticipated range of products services ; (b) respond to increases in demand on a time scale that cannot be met by the purchase of additional process capacity; (c) meet delivery promises leading to a high level of both delivery speed and reliability; (d) cope with customer specification changes during the process; (e) choose between different sets of processes, equipment to achieve a high level of compatibility in facilities, tools, dies and other auxiliary equipment. 4. The possible impact upon the definition of a product service by the technical capability of the process. For example, direct access by computers within the travel industry allows for parts of the booking in procedure to be completed before the day (e.g. seat reservations) and affords the opportunity to list options in parts of the services such as alternative routes. 5. The introduction of technology into all facets of the operations timetion will lead to changes in terms of skill requirements and staff mix. 6. Technology creates the opportunity for change, but if the basis of a business is to change fundamentally it must be driven by customer need and not by technology. 7. The process has to be able to meet the product/service specification. Furthermore, when evaluating process investments, companies need to distinguish between process capability features accruing from the fact that the process under review will be new whereas the one it replaces may be old and unable to meet the specification demands due to wear and tear and those features accruing from the fact that it is state of the art offering new and relevant capabilities. Technology may result in both barriers to entry on the one hand and ease of access on the other. The investment skills support requirements are well understood. However, if offers access to others, for example airlines are increasingly moving into the booking phase of the business as telephone/ computer access obviates the need for a high stress presence. Q: A learning curve has strategic implications. Discuss. A: The learning curve is particularly important in productivity improvement results during the rapid development and mature phases of the product life cycle. Its uses in strategic planning are discussed below: i) A firm which has the largest market share will produce the largest number of units and will have the lowest cost, even if all the firms are on the same percentage learning curve. ii) If through process technology advantages, a firm can establish itself on a lower percent learning curve than a competitor, it will have lower unit cost, even if both firms have the same cumulative output. iii) A firm with greater experience can use an aggressive price policy as a competitive weapon. iv) A firm can use aggressive process technology policy by allocating resources towards mechanization in earlier stages and automation in the later stages of growth to maintain its position.

SINGAR ACADEMY [CA-CWA-CS]

M: Trichy: 93451 22645/Chennai: 98419 71881

1.15

1-7 PLANT LAYOUTS

Q: Explain the meaning of plant layout. A: Defined by Moore: Plant layout is a plan of an optimum arrangement of facilities including personnel, operating equipment, storage space, material handling equipment and all other supporting services along with the design of best structure to contain all these facilities Need for redesign of layout arises because of the following reasons: Accidents, health hazards and low safety, Changes in environmental or legal requirements, Changes in processes, methods or equipments, Changes in product design/service design, Changes in volume of output or product-mix changes, Inefficient operations (high cost, bottleneck operations), Introduction of new products/services, Low employee morale. What are the Objectives of Good Plant layout? The primary goal of the plant layout is to maximize the profit by arrangement of all the plant facilities to the best advantage of total manufacturing of the product and other objectives are Efficient utilization of labour reduced idle time of labour and equipments, Higher flexibility (to change the layout easily), Higher utilization of space, equipment and people (employees), Improved employee morale and safe working conditions, Improved flow of materials, information and people (employees), Improved production capacity, Reduced congestion or reduced bottleneck centers, Reduced health hazards and accidents, Reduced material handling costs, To allow ease of maintenance, To facilitate better coordination and face-to-face communication where needed, To improve productivity, To provide ease of supervision, To provide product flexibility and volume flexibility, To utilize available space efficiently and effectively. What way the choices of layout facilitate the organization? Facilitating the flow of materials and information, Improving communication, Improving employee morale, Increasing customer convenience and sales (in service organizations), Increasing the efficient utilization of labour and equipment, Reducing hazards to employees. Some of the fundamental layout choices available to managers are: Whether to plan the layout for the current or future needs?

Overview of Production Process

1.16

Whether to select a single-story or multistory building design? What type of layout to choose? What performance criteria to emphasise? List down the factors influencing layout choices: Location Machinery and Equipments Managerial Policies Materials Product Type of industry Workers (gender) Q: What are the principles to be borne in mind while designing a plant layout? Principle of Minimum Travel: Men and materials should travel the shortest distance between operations so as to avoid waste of labour and time and minimize the cost of materials handling. Principle of Sequence: Machinery and operations should be arranged in a sequential order. This principle is best achieved in product layout, and efforts should be made to have it adopted in the process layout. Principle of Usage: Every unit of available space should be effectively utilized. This principle should receive top consideration in towns and cities where, land is costly. Principle of Compactness: There should be a harmonious fusion of all the relevant factors so that the final layout looks well integrated and compact. Principle of Safety and Satisfaction: The layout should contain built in provisions for safety for the workmen. It should also be planned on the basis of the comfort and convenience of the workmen so that they feel satisfied. Principle of Flexibility: The layout should permit revisions with the least difficulty and at minimum cost. Principle of Minimum Investment: The layout should result in savings in fixed capital investment, not by avoiding installation of the necessary facilities but by an intensive, use of available facilities. List down the importance of layout Avoidance of Bottlenecks Avoidance of Unnecessary and Costly Changes Better Production Control Better Supervision Economies in Handling Effective Use of Available Area Improved Employee Morale Improved Quality Control Improved Utilization of Labour Minimization of Production Delays Minimum Equipment Investment List down the characteristic of good layout:

SINGAR ACADEMY [CA-CWA-CS]

M: Trichy: 93451 22645/Chennai: 98419 71881

1.17

Effective coordination and integration among the various resources. Facilitates supervision and control. Flexibility for change of layout, expansion, changes in product design and process. Good working conditions - lighting, ventilation, temperature, humidity etc., Maximum utilization of available space. Proper location of storage areas. Provision of safety and reduction of accidents. Smooth flow of production (i.e., raw materials and workers). Smooth movement of men, materials and machinery from place to place. Classification of Layout 1. Process layout 2. Product layout 3. Combination layout 4. Fixed position layout 5. Group layout Process Layout: Process layout is recommended for batch production. All machines performing similar type of operations are grouped at one location in the process layout e.g., all lathes, milling machines, etc. are grouped in the shop will be clustered in like groups. Thus, in process layout the arrangement of facilities are grouped together according to their functions. Advantages: 1. In process layout machines are better utilized and fewer machines are required. 2. Flexibility of equipment and personnel is possible in process layout. 3. Lower investment on account of comparatively less number of machines and lower cost of general purpose machines. 4. Higher utilization of production facilities. 5. A high degree of flexibility with regards to work distribution to machineries and workers. 6. The diversity of tasks and variety of job makes the job challenging and interesting. 7. Supervisors will become highly knowledgeable about the functions under their department. Limitations 1. Backtracking and long movements may occur in the handling of materials thus, reducing material handling efficiency. 1. Material handling cannot be mechanized which adds to cost. 2. Process time is prolonged which reduce the inventory turnover and increases the process inventory. 3. Lowered productivity due to number of set-ups. 4. Throughput (time gap between in and out in the process) time is longer. 5. Space and capital are tied up by work-in-process. Product Layout: In this type of layout, machines and auxiliary services are located according to the processing sequence of the product. If the volume of production of one or more products is large, the facilities can be arranged to achieve efficient flow of materials and lower cost per unit. Advantages 1. The flow of product will be smooth and logical in flow lines. 2. In-process inventory is less. 3. Throughput time is less.

Overview of Production Process

1.18

4. Minimum material handling cost. 5. Simplified production, planning and control systems are possible. 6. Less space is occupied by work transit and for temporary storage. 7. Reduced material handling cost due to mechanized handling systems and straight flow. 8. Perfect line balancing which eliminates bottlenecks and idle capacity. 9. Manufacturing cycle is short due to uninterrupted flow of materials. 10. Small amount of work-in-process inventory. 11. Unskilled workers can learn and manage the production. Limitations 1. A breakdown of one machine in a product line may cause stoppages of machines in the downstream of the line. 2. A change in product design may require major alterations in the layout. 3. The line output is decided by the bottleneck machine. 4. Comparatively high investment in equipments is required. 5. Lack of flexibility. A change in product may require the facility modification. Combination Layout: A combination of process and product layouts combines the advantages of both types of layouts. A combination layout is possible where an item is being made in different types and sizes. Fixed Position Layout: This is also called the project type of layout. In this type of layout, the material, or major components remain in a fixed location and tools, machinery, men and other materials are brought to this location. This type of layout is suitable when one or a few pieces of identical heavy products are to be manufactured and when the assembly consists of large number of heavy parts, the cost of transportation of these parts is very high. Advantages 1. Helps in job enlargement and upgrades the skills of the operators. 2. The workers identify themselves with a product in which they take interest and pride in doing the job. 3. Greater flexibility with this type of layout. 4. Layout capital investment is lower. Group Layout (or Cellular Layout): There is a trend now to bring an element of flexibility into manufacturing system as regards to variation in batch sizes and sequence of operations. A grouping of equipment for performing a sequence of operations on family of similar components or products has become all the important. GT can be used to develop a hybrid between pure process layout and pure flow line (product) layout. This technique is very useful for companies that produce variety of parts in small batches to enable them to take advantage and economics of flow line layout. Advantages of Group Technology Layout 1. Component standardization and rationalization. 2. Reliability of estimates. 3. Effective machine operation and productivity. 4. Customer service. It can decrease the 1. Paper work and overall production time. 2. Work-in-progress and work movement. 3. Overall cost.

SINGAR ACADEMY [CA-CWA-CS]

M: Trichy: 93451 22645/Chennai: 98419 71881

1.19

Limitations of Group Technology Layout This type of layout may not be feasible for all situations. If the product mix is completely dissimilar, then we may not have meaningful cell formation. Design of Product Layout Assembly lines are a special case of product layout. In a general sense, the term assembly line refers to progressive assembly linked by some material-handling device. The usual assumption is that some form of pacing is present and the allowable processing time is equivalent for all workstations. Design of Process Layout Process layouts, the relative arrangement of departments and machines is the critical factor because of the large amount of transportation and handling involved. Procedure for Designing Process Layouts Process layout design determines the best relative locations of functional work centers. Work centers that interact frequently, with movement of material or people, should be located close together. To minimize transport times and material-handling costs, we would like to place close together those work centers that have the greatest flow of materials and people between them. For manufacturing systems, material flows and transporting costs can be estimated reasonably well using historical routings for products or through work sampling techniques applied to workers or jobs. The amounts and/or costs of flows among work centers are usually presented using a flow matrix, a flow-cost matrix, or a proximity chart. 1. Flow Matrix: A flow matrix is a matrix of the estimated amounts of flow between each pair of work centers 2. Flow-cost Matrix: A basic assumption of facility layout is that the cost of moving materials or people between work centers is a function of distance travelled. It is assumed that per unit cost of material and personnel flows between work centers is proportional to the distance between the centers. 3. Proximity Chart: Proximity charts (relationship charts) are distinguished from flow and flow-cost matrices by the fact that they describe qualitatively the desirability or need for work centers to be close together, rather than providing quantitative measures of flow and cost. These charts are used when it is difficult to measure or estimate precise amounts or costs of flow among work centers. This is common when the primary flows involve people and do not have a direct cost but rather an indirect cost, such as when employees in a corporate headquarters move among departments (payroll, printing, information systems) to carry out their work. ORGANISATION OF PHYSICAL FACILITIES 1. Factory building (A. Design of the building. B. Types of buildings. 2. Lighting 3. Climatic conditions 4. Ventilation 5. Work-related welfare facilities

Overview of Production Process

1.20

Q: What do you understand by Ergonomics? A: Ergonomics involves fitting job to the worker so as to minimize fatigue and increase productivity and job satisfaction. Ergonomics uses the knowledge of anatomy, physiology, psychology, to study the man-machine system so as to design machine for users, to blend man and machine into single working unit. Ergonomics facilitates better utilization of human and physical resources. Ergonomics covers the following areas: i. Workplace: Consists of layout, information and controls. ii. General environment: Comprises of lighting, ventilation, noise, vibration and other factors affecting health and wellbeing of workers. iii. Other factors: Fatigue, vigilance, inspection, problem of disabled workers etc. Q: Optimizing Layout Using Load Distance Score: A defense contractor is evaluating its machine shops current process layout. The figure below shows the current layout and the table shows the trip matrix for the facility. Health and safety regulations require departments E and F to remain at their current positions. E B F A C D Current Layout From/To A B C D E F A - 8 3 9 5 B 3 C 8 9 D 3 E - 3 F Can layout be improved? Also evaluate using load distance (LD) score. A: Keep the departments E and F at the current locations. Because C must be as close as possible to both E and F, put C between them. Place A directly south of E, and B next to A. all of the heavy traffic concerns have been accommodated. Department D is in the remaining place. The proposed layout is shown in figure below. The load distance (ID) scores for the existing and proposed layout are shown below. As Id score for proposed layout indicates improvements over existing. E C F A B D Proposed Layout Dept. air No. of Trips Existing plan Proposed plan (1) Distance (2) LoadDistance (12) Distance (3) LoadDistance (13) A-B 8 2 16 1 8 A-C A-E A-F B-D C-E C-F D-F E-F Total 3 9 5 3 8 9 3 3 1 1 3 2 2 2 1 2 3 9 15 6 16 18 3 6 92 2 1 3 1 1 1 1 2 6 9 15 3 8 9 3 6 67

SINGAR ACADEMY [CA-CWA-CS]

M: Trichy: 93451 22645/Chennai: 98419 71881

1.21

Q: Optimizing Layout Using Load Distance Score: Find an improved layout for the initial layout given in figure by using CRAFT fair wise exchange technique. The interdepartmental flows are also furnished along with the interdepartmental cost matrix. Initial Layout A B C Cost Matrix From\To A B A 1 B 1 C 1 1 Flow Matrix From\To A B A 1 B 1 C 3 3 Distance Matrix From\To A B C A 1 2 B 1 1 C 2 1

C 1 1

C 2 3

A: Total cost matrix (cost flow distance) From To A B C Total cost

A 1 6

B 1 3

C 4 3

Total 5 4 9 18

CRAFT considers exchanges between pair of departments which have either a common border or the same area. Since in the given problem, all the three departments A, B and C have the same area they can be interchanged with each other in pairs. The interchanges that are possible between, (i) A and B, (ii) A and C, and (iii) B and C Let us interchange A and B. B A C Cost Matrix [CM] Fro\To A B C A 1 1 B 1 1 C 1 1 Flow Matrix [FM] Fro\To A B C A 1 2 B 1 3 C 3 3 Distance Matrix [DM] Fro\To A B C A 1 1 B 1 2 C 1 2 Total Cost Matrix Fro/To A B C A 1 2 B 1 6 C 3 6 CM FM DM Total 3 7 9 19

This matrix is costlier than the initial layout and is not accepted Let us interchange B and C. A C B

Total Cost Matrix Fro/To A B C A 2 2 B 2 3 C 3 3 CM FM DM This matrix is an improvement over that for the initial layout and is accepted

Cost Matrix [CM] Fro\To A B C A 1 1 B 1 1 C 1 1

Flow Matrix [FM] Fro\To A B C A 1 2 B 1 3 C 3 3

Distance Matrix [DM] Fro\To A B C A 2 1 B 2 1 C 1 1

Total 4 5 6 15

Overview of Production Process

1.22

1-5 LOCATION
Meaning The selection of location is a key-decision as large investment is made in building plant and machinery. It is not advisable or not possible to change the location very often. The purpose of the location study is to find an optimum location one that will result in the greatest advantage to the organization. What are the factors influencing plant location/facility location? Controllable Factors 1. Proximity to markets 2. Supply of materials 3. Transportation facilities 4. Infrastructure availability 5. Labour and wages 6. External economies 7. Capital Uncontrollable Factors 8. Government policy 9. Climate conditions 10. Supporting industries and services 11. Community and labour attitudes 12. Community Infrastructure Location Models 1. Factor rating method 2. Weighted factor rating method 3. Load-distance method 4. Centre of gravity method 5. Break even analysis Steps in the Selection Process of Location under Factor Rating Method 1. Identify the important location factors. 2. Rate each factor according to its relative importance, i.e., higher the ratings is indicative of prominent factor. 3. Assign each location according to the merits of the location for each factor. 4. Calculate the rating for each location by multiplying factor assigned to each location with basic factors considered. 5. Find the sum of product calculated for each factor and select best location having highest total score. Q: What factors will have to be considered in choosing the location for the following industries? i) Aluminium industry. ii) Thermal power plant. iii) Large furniture (domestic and office) manufacturing unit. A: The general factors to be considered for any Industry location are the following:

SINGAR ACADEMY [CA-CWA-CS]

M: Trichy: 93451 22645/Chennai: 98419 71881

1.23

1. Proximity to raw material sources 2. Availability of critical input required for the process 3. Proximity to the Market 4. Availability of skilled labour 5. Special tax and other financial benefits available in a location 6. Central/state/municipal regulations. While all the above factors are important for all Industries, some factors will be dominant for some industries as explained below: 1. Aluminium Industry is a power intensive industry. Hence the region/location where availability of power is a very critical consideration for the choice of location. Likewise, proximity to raw material source namely bauxite is also a vital consideration. 2. For thermal plant proximity to coal mines is very important since transportation of huge quantity of coal every day is very costly and difficult. Equally important is the availability of abundant quality of water for the boiler. 3. For furniture industry proximity to the Market is a crucial factor apart from other factor. While transporting finished furniture, damages may take place and also it will be bulky and occupy more space and hence costly. Therefore furniture units are located nearer towns and cities nearer to offices and houses. Q: Location selection using factor rating method: Let us assume that a new medical facility, Healthcare, is to be located in Delhi. The location factors, factor rating and scores for two potential sites are shown in the following table. Which is the best location based on factor rating method? Solution Sl.No Location Factor Factor Rating Rating Location 1 Location 2 1 Facility utilization 8 3 5 2 Total patient per month 5 4 3 3 Average time per emergency trip 6 4 5 4 Land and construction costs 3 1 2 5 Employee preferences 5 5 3 A: Total 96 Sl. No Location Factor Factor Location 1 Location 2 Rating Rating (2) Total= Rating (3) Total= (1) (1)(2) (1)(3) 1 Facility utilization 8 3 24 5 40 2 Total patient per month 5 4 20 3 15 3 Average time per emergency trip 6 4 24 5 30 4 Land and construction costs 3 1 3 2 6 5 Employee preferences 5 5 25 3 15 Total 96 Total 106 Weighted Factor Rating Method In this method to merge quantitative and qualitative factors, factors are assigned weights based on relative importance and weightage score for each site using a preference matrix is calculated. The site with the highest weighted score is selected as the best choice.

Overview of Production Process

1.24

Q: Location Selection using Weighted Factor Rating Method: Let us assume that a new medical facility, Health-care, is to be located in Delhi. The location factors, weights, and scores (1 = poor, 5 = excellent) for two potential sites are shown in the following table. What is the weighted score for these sites? Which is the best location? Sl.No Location Factor Weight Scores Location 1 Location 2 1 Facility Utilization 25 3 5 2 Total patient Km per month 25 4 3 3 Average time per emergency trip 25 3 3 4 Land and construction costs 15 1 2 5 Employee preference 10 5 3 A: The weighted score for this particular site is calculated by multiplying each factors weight by its score and adding the results: Sl.No Location Factor Weight Scores Location 1 Location 2 [1] [2] [1][2] [3] [1][3] 1 Facility Utilization 25 3 75 5 125 2 Total patient Km per month 25 4 100 3 75 3 Average time per emergency trip 25 3 75 3 75 4 Land and construction costs 15 1 15 2 30 5 Employee preference 10 5 50 3 30 315 335 Location 2 is the best site based on total weighted scores. Q: A Media Company proposes to build a new office in one of the three locations. Using the data below, determine the best location. Please assume the following values: Excellent = 10, V. Good = 8, Good = 6, Fair = 4 and Poor = 2. Rating Location Location Location Weight Factor A. Living Standard Excellent Good Fair B. Labour Relations Good Fair Excellent C. Govt. aid V. Good Good Poor D. Schooling System Fair Excellent Good E. Distance to Customers V. Good Poor Excellent F. Distance to Suppliers Poor Good V. Good G. Revenue Contribution V. Good Excellent Good A: The following steps are to be followed: (a) Convert descriptive scores into numerical. (b) Multiply by weights. (c) Add them. The location that scores the highest total will obviously be the best choice. Location 1: 10 30 + 6 10 + 8 5 + 4 15 + 8 10 + 2 10 + 8 20 = 720

30 10 5 15 10 10 20

SINGAR ACADEMY [CA-CWA-CS]

M: Trichy: 93451 22645/Chennai: 98419 71881

1.25

Location 2: 6 3 + 4 10 + 6 5 + 10 15 + 2 10 + 6 10 + 10 20 Location 3: 4 30 + 10 10 + 2 5 + 6 15 + 10 10 + 8 10 + 6 20 Conclusion: As Location No. 1 gets the highest scores, it becomes the best Choice.

= =

680 620

Load-distance Method The load-distance method is a mathematical model used to evaluate locations based on proximity factors. The objective is to select a location that minimizes the total weighted loads moving into and out of the facility. The distance between two points is expressed by assigning the points to grid coordinates on a map. An alternative approach is to use time rather than distance. Centre of Gravity The centre of gravity is defined to be the location that minimizes the weighted distance between the warehouse and its supply and distribution points, where the distance is weighted by the number of tones supplied or consumed. Break-even Analysis Break even analysis implies that at some point in the operations, total revenue equals total cost. Break even analysis is concerned with finding the point at which revenues and costs agree exactly.

Units of output or percentage of capacity Q: Location selection by comparing total cost for various locations at various ranges of production: A company is planning to undertake the production of medical testing equipments has to decide on the location of the plant. Three locations are being considered, namely, A, B and C. the fixed costs of three locations are estimated to be 300 Lakhs, 500 Lakhs and 250 Lakhs respectively. The variable costs are 3000, 2000 and 3500 per unit respectively. The average sales price of the equipment is 7000 per unit. Find (i) The range of annual production/sales volume for which each location is most suitable. (ii) Select the best location, if the sales volume is of 18,000 units. A: Determination of total costs of three locations. Total cost = Fixed cost + [Quantity produced] [Variable cost] = F + V.Q (a) Total cost at A = 3,00,00,000 + 3,000 ..(1) (b) Total cost at B = 5,00,00,000 + 2,000 ...(2) (c) Total cost at C = 2,50,00,000 + 3,500 (3)

Overview of Production Process

1.26

For the various volumes of production, i.e., 5,000, 10,000, 15,000, 20,000 and 25,000 units, the total costs are computed at the three locations and they are plotted as shown in figure. Table: Total costs at different volumes for three locations: ( in Lakhs) Volume (Nos) 5,000 10,000 15,000 20,000 25,000 A 450 600 750 900 1,050 B 600 700 800 900 1,000 C 425 600 775 950 1,125 Decision Rules For quantities up to 20,000 units, C is the most economical location. For quantities above 22,000, A is the preferred location. Q: Location selection using BEP analysis [indifference point]: Potential locations X, Y and Z have the cost structures shown below. The ABC company has a demand of 1,30,000 units of a new product. Three potential locations X, Y and Z having following cost structures shown are available. Select which location is to be selected and also identify the volume ranges where each location is suited? Location X Location Y Location Z Fixed Costs 1,50,000 3,50,000 9,50,000 Variable Costs 10 8 6 A: Solve for the crossover between X and Y: 10X + 150,000 = 8X + 350,000 2X = 200,000 X = 100,000 units Solve for the crossover between Y and Z: 8X + 350,000 = 6X + 950,000 2X = 600,000 X = 300,000 units Therefore, at a volume of 1, 30,000 units, Y is the appropriate strategy. From the graph (Fig. 4.4) we can interpret that location X is suitable up to 100,000 units, location Y is suitable up to between 100,000 to 300,000 units and location Z is suitable if the demand is more than 300,000 units. BEP Students

Location Economies: An ideal location is one which results in lowest production cost and least distribution cost per unit. Economic analysis is carried out to decide as to which locate best location. From the following data select the most advantageous location for setting a plant for making transistor radios

SINGAR ACADEMY [CA-CWA-CS]

M: Trichy: 93451 22645/Chennai: 98419 71881

1.27

1 Total initial investment 2 Total expected sales 3 Distribution expenses 4 Raw material expenses 5 Power and water supply expenses 6 Wages and salaries 7 Other expenses 8 Community attitude 9 Employee housing facilities Solution: Total Expenses Add 3, 4, 5, 6 & 7 Rate of return (RoR), % = (RoR) for Site X = (RoR) for Site Y = (RoR) for Site Z = 100 = 27.5% 100 = 42.5% 100 = 7.5%

Site X 2,00,000 2,50,000 40,000 70,000 40,000 20,000 25,000 Indifferent Poor Site X 1,95,000 100 Site Y 2,15,000

Site Y 2,00,000 3,00,000 40,000 80,000 30,000 25,000 40,000 Want-business Excellent Site Z 2,35,000

Site Z 2,00,000 2,50,000 75,000 90,000 20,000 20,000 30,000 Indifferent Good

Location Y can be selected because of higher rate of return.

Overview of Production Process

1.28

MATERIAL HANDLING
Introduction and meaning: the function dealing with the preparation, placing and positioning of materials to facilitate their movement or storage Objectives of material handling system Better control of the flow of goods Higher productivity at lower manufacturing cost Improved working conditions and greater safety in the movement of materials Increased storage capacity. Lower the unit materials handling costs Provide for fewer rejects Reduce the manufacture cycle time Principles of material handling Principles relating to the elimination of wasteful methods, Principles relating to the laying out the plant, Principles relating to the selection and application of materials handling equipment. Wasteful methods can be eliminated by following the under mentioned principles. Avoiding the unnecessary transfer of materials from floor to workplace or from container to container, Eliminating unnecessary mixing and subsequent storing, Increasing the speed of handling the materials, Utilizing gravity as a moving force, wherever practicable, Introduction of automaticity into the materials handling system, Reducing to a minimum the number of handlings of materials, Using mechanical aids to eliminate the use of hand labour in the movement of materials. PRINCIPLES OF MATERIAL HANDLING 1. Planning principle 2. Systems principle 3. Space utilization principle 4. Unit load principle 5. Gravity principle 6. Material flow principle 7. Simplification principle 8. Safety principle 9. Mechanization principle 10. Standardization principle 11. Flexibility principle 12. Equipment selection principle 13. Dead weight principle 14. Motion principle 15. Idle time principle 16. Maintenance principle

SINGAR ACADEMY [CA-CWA-CS]

M: Trichy: 93451 22645/Chennai: 98419 71881

1.29

17. 18. 19. 20.

Obsolescence principle Capacity principle Control principle Performance principle

Factors considered for the selection of material handling equipments 1. Properties of the material 2. Layout and characteristics of the building 3. Production flow 4. Cost considerations 5. Nature of operations 6. Engineering factors 7. Equipment reliability Factors affecting the selection of materials handling equipment: Adaptability Cost Ease of maintenance Environment Flexibility Power Space requirements Speed Supervision The load capacity Material Handing Equipments a. Fixed path equipments which move in a fixed path. Conveyors, monorail devices, chutes and pulley drive equipments belong to this category. A slight variation in this category is provided by the overhead crane, which though restricted, can move materials in any manner within a restricted area by virtue of its design. Overhead cranes have a very good range in terms of hauling tonnage and are used for handling bulky raw materials, stacking and at times palletizing. b. Variable path equipments have no restrictions in the direction of movement although their size is a factor to be given due consideration trucks, forklifts mobile cranes and industrial tractors belong to this category. Forklifts are available in many ranges, they are maneuverable and various attachments are provided to increase their versatility. Q: Explain how you would choose a material handling equipment from amongst alternative offers. A: The choice of material handling equipment is essentially based on technical suitability and economic considerations. In the first stage we check up whether the equipment offers meets the technical criteria/parameters mentioned in the specification i.e. the load to be lifted/carried, the speed of movement, maneuverability, turning radius etc. Once we are satisfied that the equipment meets the technical parameters, we check up the cost aspects and select the equipment having the lowest life time cost. We thus take into account the cost of initial acquisition, receiving costs incurred during the life cycle of the equipment as annual operating cost and repair/maintenance costs, and the salvage value of the equipment at the end of its life. The cash out flows and inflows occurring

Overview of Production Process

1.30

during the various periods are suitably discounted so as to have a common basis for comparison. While the above approach is suitable for equipments offering identical performance/output, we decide the issue on cost per unit handled, in case of equipment having differing output parameters, subject to of course their meeting the technical criteria specifications Q: Prasad Timber Works uses forklift trucks to transport lumber from factory to a storage area 0.3 km away. The lift trucks can move three loaded pallets per trip and travel at an average speed of 8 km. per hour (allowing for loading, unloading, delays and travel). If 640 pallet loads must be moved during 8 hours shift, how many lift trucks are required? Assume single shift working and 300 working days in a year. A: Total distance travelled by fork lift truck per trip (0.3+0.3) km 0.6 km (up and down) No. of trips that can be made by the truck per shift 8km/0.6km 8hrs 106.66 trips/shift No. of pallet loads carried per shift by each truck 106.66 3 320 Total no. of fork lift trucks required for 640 pallet loads 640/320 2 fork lift trucks Q: Dumpers are used to transport the Steel Ingots from Melting Shop to Ingot Yard, which is situated at a distance of 0.6 km from the melting shop. The capacity of the dumper is 8 tonnes. Due to speed restrictions, within factory the dumper cannot run beyond 12 Km/per hour. In order to avoid congestion in the Melting shop, a minimum transportation of 3200 Tonnes is necessary per shift (of 8 hrs. duration). Find the number of dumpers that would be required. Ignore the loading and unloading time. A Distance travelled per trip 0.6 + 0.6 1.2 Km. No. of trips can be made per hour 12/1.2 10 trips. No. of trips per single shift 10 8 80 trips. Tonnage moved per shift 80 8 640 tonnes No. of dumpers required 3200/640 5 Nos. Required tonnage to move per shift/Tonnage moved per shift per dumper Q: A warehouse handles 60,00,000 cases each of inbound and outbound shipments per year, operating two shifts a day, five days a week. (Each shift is of 8 hours durations). 70% of inbound shipments and 90% of outbound shipments are by trucks. The truck loading rate is 175 outbound cases per worker-hour while the unloading rate is 200 inbound cases per worker-hour. A truck carries 500 cases for both inbound and outbound shipments. A 25% safety factor is desired since flow of the trucks throughout the month is not uniform. The trucks stand at the entry to the warehouse while being loaded or unloaded. The warehouse manager wants to design a new warehouse with sufficient number of truck entries to the warehouse to handle the operations mentioned above. Please calculate the number of truck-entries the warehouse should have, from the data given above; assuming that the width of the entry permits only one truck to be loaded or unloaded at 0 a time. A: (i) Inbound Requirements: a. (% Inbound via Truck) (Total Inbound) (60,00,000 0.7) 42,00,000 cases.

SINGAR ACADEMY [CA-CWA-CS]

M: Trichy: 93451 22645/Chennai: 98419 71881

1.31

b. c. d. (ii) a. b. c. d.

Inbound Trucks required (Total inbound Cases)/Cases per Truck Hours per Truck (Cases per Truck)/ (Inbound Productivity) Total Inbound Truck- Hours (b c) Outbound Requirements (% Outbound via Truck) (Total Outbound) Outbound Trucks required (Total Outbound Cases)/Cases per Truck Hours per Truck (Cases per Truck)/(Outbound Productivity) Total Outbound Truck-Hours (b c) (iii) a. b. c. d. e.

42,00,000/500 500/200 (8,400 2.5)

8,400 Trucks. 2.5 Hrs per Inbound Truck. 21,000 Hrs/Yr.

(60,00,000 0.9) 54,00,000/ 500 500/175 10,8002.85

54,00,000 cases. 10,800Truck 2.85 Hrs per Outbound Truck 30,780 Hrs/Year.

Total Hours Required: Inbound Outbound Sub-Total Safety Factor for peaking. (25%) Total

= = = = =

21,000 Hrs. 30,780 Hrs. 51,780 Hrs. 12,495 Hrs. 64,725 Hrs

(iv) Hours Available per Year: (52 weeks) (Hrs per Day) (Days per week) 52 16 (2 shifts / day) 5 (v) Truck Entries required: (Truck-Hours required) / (Annual Hours Available) 64,725 Hrs / 4,160 Hrs

4,160 Hrs.

15.5 say 16.

Overview of Production Process

1.32